How car finance works through Autedia
Can I get car finance if I’ve been refused elsewhere?
Yes, just because your car finance application has been refused elsewhere that doesn’t mean you need to give up on finding a loan. Every lender has different eligibility criteria that they consider when assessing your loan application, which means you might be rejected by one but easily approved by another.
At Autedia, we partner with an online finance broker who works with a wide panel of lenders, meaning we can look to find you the best deal for your circumstances, even if you’ve found it difficult to secure a loan in the past.
We also have access to lenders that specialise in helping people with bad credit, those who have missed payments in the past, and applicants who are self-employed or receiving benefits.
Apply for a no obligation quote online and you’ll receive a decision in minutes. No anxious wait, no awkward conversations, and no impact on your credit score (we’ll only carry out a soft credit search at this stage).
Why should you choose Autedia for your car finance?
Car Finance Calculator
|Total cost of credit||2,125.46|
Rates from 8.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status.
Representative example: borrowing £6,500 over 5 years with a representative APR of 29.9%, an annual interest rate of 29.9% (Fixed) and a deposit of £0.00, the amount payable would be £196.34 per month, with a total cost of credit of £5,280.14 and a total amount payable of £11,780.14.
Why has my car finance application been refused?
There are many reasons why you might have been refused car finance. While some lenders may not disclose their decision-making process, there’s no harm in asking. They might be able to tell you if it was due to your credit score, the vehicle you want to buy, or your affordability, for example.
It’s important to remember that there’s no such thing as guaranteed car finance, regardless of your circumstances.
Here are just a few of the reasons why a car finance application might be refused:
- You’ve made a mistake on your application form
- You’ve missed payments in the past and have a poor credit score
- Your monthly payments would wipe out almost all your disposable income
- You’re self-employed and have an unreliable income
- You’re under 18 years old
- You’re over 70 years old
- You don’t have three years’ address history in the UK
- You’ve chosen a classic or vintage car
What should I do if I’ve been refused car finance?
If you’ve been rejected for car finance, the first task on your to-do list should be to try and find out why. You might already know that you have a bad credit score, or you made a mistake on your application form, but the lender or car finance broker may be able to shed more light on the exact reason for their decision.
Next, consider taking a break before making another finance application. Of course, sometimes that isn’t possible, especially if you need a new car straightaway to get to work or take the kids to school. However, depending on where you apply for finance, a hard credit search could be carried out. Hard searches will stay on your credit report for up to a year and too many in a short time could make it more difficult for you to find a loan in the future.
Choosing a different vehicle could also increase your chances of being accepted for a finance deal next time. If issues have been flagged with your affordability, finding a cheaper used car, or saving a larger deposit so you don’t have to borrow as much money, could improve your car finance eligibility.
Some lenders also have restrictions on the age and mileage of any vehicle you’re looking to finance. These differ depending on the lender, but a good rule of thumb is to pick a car that’s less than 10 years old and has under 100,000 miles on the clock.
If your credit score is holding you back, there are steps you can take to improve your score over time.
I have excellent credit, why have I been refused car finance?
While most lenders will look at your credit score when assessing a finance application, it’s not the only factor they consider. No credit score can guarantee a finance approval. If you have an excellent credit score, there may be other reasons that your car finance application has been refused, such as having restricted affordability, choosing a car outside of the lenders’ criteria, or having an unreliable income.
If you can, try to find out why your application has been refused and take steps to address this or seek out another lender that has different eligibility criteria.
Working with a credit broker like Autedia can help as we have access to a panel of lenders and can look to find car finance for people with a wide range of circumstances.
Can Autedia help if I have been refused finance for having bad credit?
Yes, we can look to find car loans for people in a variety of different situations, including those with bad credit. We even work with lenders who can approve finance applications for people who have missed payments, have had a County Court Judgement (CCJ) against them, or been in an Individual Voluntary Arrangement (IVA) in the past.
While we can’t guarantee we’ll be able to help, we’ll always look to find you the best deal from a panel of lenders. We also won’t run a hard credit search unless you’re provisionally approved and choose to move forward. This means that applying to get a car finance quote with Autedia won’t impact your credit score, even if we can’t find you an approval this time.
How can I improve my credit score?
While credit scores aren’t an exact science, and different credit reference agencies use different information to calculate your score, there are steps you can take to improve your credit score over time:
- Keep up with your repayments
Unfortunately, missing just one payment can negatively impact your score. If you find it easy to forget to pay, consider setting up direct debits to come out automatically and schedule them the day after payday so you can make sure the money is always available.
- Check for mistakes
You can check your credit report for FREE and it’s a great habit to adopt. Look out for any mistakes such as misspelt addresses, credit searches you don’t recognise, or incorrectly reported payment histories. You can challenge any inaccuracies with the relevant credit reference agency and get them fixed.
- Keep your credit utilisation low
While maxing out your credit card is sometimes unavoidable, it might not be helping your credit score. Only using a small percentage of your total available credit can indicate to lenders that you’re a responsible borrower. This is also why closing credit cards you don’t use – and reducing the amount of credit available to you – won’t necessarily improve your score.
- Register on the electoral roll
Each time you move house, be sure to register to appear on the electoral roll as this can improve your credit score. You can do this online for free in a couple of minutes.
- Check your financial relationships
Being married or living with someone doesn’t automatically link your finances, but joint accounts or loans will. If you have a joint mortgage or credit card, for example, the other person’s credit score and financial behaviour can also impact your score. Make sure that you’re aware of the other person’s financial situation before agreeing to enter a joint agreement or signing up to act as a guarantor.
What is affordability?
Affordability is one of the factors lenders consider when assessing a finance application. They will look at your monthly income and essential spending to find out how much disposable income you have left over. The more disposable income you have, the more likely it is that you’ll be able to afford a car loan.
Affordability assessments are part of being a responsible lender. Car finance can be a big financial commitment, after all, and one that could last up to seven years!
When looking at your ability to afford a car, consider the running costs, fuel, tax, and potential repair charges as well as the monthly payment itself. Knowing your budget and how much you can afford to pay out each month could help you when it comes to affordability checks.
How can I check my car finance eligibility for FREE?
If you’ve found it hard to find finance in the past or are concerned your application will be refused, you can check your car finance eligibility for FREE.
Head over to our car finance calculator. Enter how much you’d like to borrow, your ideal loan term length, and whether your credit score is excellent, good, fair, or bad. The calculator will then get to work to give you an estimate of what your monthly repayments could look like.
Next, it’s time to get your FREE no obligation quote. Complete our online application form and you’ll get a decision in minutes. Don’t worry if you don’t know exactly how much you’d like to borrow at this stage, but the more accurate you can be, the easier it will be for your eligibility to be assessed.
The details you enter on your application form will be used to carry out a soft credit check (which shouldn’t be visible to other lenders). The panel of lenders we work with will then let you know whether you’ve been approved in principle.
Your dedicated account manager will give you a call to talk you through the process but it’s completely up to you whether you choose to proceed or not.